The Federal Reserve on Thursday announced written agreements with four banking companies.
Community Financial Shares Inc. in Glen Ellyn, Ill., agreed to be a source or strength to its $335.6 million-asset Community Bank, which has been operating under a consent order with regulators since Feb. 7. The company must also provide regulators with a cash-flow projection for the remainder of 2011.
Four Oaks Fincorp Inc. in Four Oaks, N.C., agreed to serve as a source of strength to its $960.5 million-asset Four Oaks Bank & Trust. The company also agreed to provide regulators with plans to improve credit risk management practices and board oversight, among other things. Four Oaks Fincorp must also create a policy allowing for an independent review of its loan portfolio.
North Texas Bancshares Inc. in Dallas agreed to serve as source of strength to its $727.8 million-asset Park Cities Bank, which has been operating under a consent order with regulators since April 15, 2010. The company must also file a plan to have "sufficient capital."
Provident Community Bancshares Inc. in Rock Hill, S.C., agreed to be a source of strength to its $400.1 million-asset Provident Community Bank, which has been operating under a consent order with regulators since Dec. 23, 2010.
Under each agreement, the companies are prohibited from paying dividends or paying interest or principal on subordinated debt or preferred shares without Fed approval.
